What is land tax and who pays it?
Land tax is pretty straightforward; it’s a tax you pay on land you own or co-own. But there’s more to it than going to the local tax office and paying your dues. The amount of tax varies depending on the type of land, what it’s used for, and where it’s located.
Key points:
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To help you understand land tax, we’ve created this simple guide below.
What is land tax?
This is an annual tax charged on any land you own, solely or co-own with someone else, above a certain value threshold, which varies by state. Land tax usually applies to commercial properties, investment properties, and vacant land.
Except for the Northern Territory, your state or territory government will levy your land tax at the end of either the financial or calendar year.
Are there exemptions to land tax?
Your permanent residence (i.e., the property you own and live in) is usually exempt from the land tax charge.
You’re also exempt from paying land tax if the total value of the land you own is below the value threshold that your state or territory has set. Make sure to check out the thresholds guide below to find out.
For those who don’t fall into this category, you're more likely to be affected by land tax.
When does land tax apply?
If you own property that has a taxable value above the value threshold (as dictated by the state or territory in which the land is located), you may have to pay land tax. This can include anything from:
- vacant land, including rural land
- land where a house, residential unit or flat has been built
- investment properties
- residential, commercial or industrial units, including car spaces
- commercial properties
- holiday homes
- company title units
- land leased from the state or local government
It’s best to check with an accountant or tax expert to understand land tax thresholds and figure out how much you need to pay.
How is land tax calculated?
The amount of land tax you pay depends on the unimproved value of all the taxable property you own. Unimproved value reflects the value of the land in its natural and undisturbed conditions with no improvements. For instance, it does not include fencing, clearing, earthworks, levelling, etc.
In this case, it is its market value under normal sales conditions. Most states and territories charge land tax on a sliding scale. When the owner’s land value passes the specific exemption threshold, they start to pay land tax.
Land valuations used for land tax purposes are generally determined by the relevant state or territory valuation authority. Typically, the owner is charged a land tax that incorporates the following:
The base sum plus a dollar or percentage amount for every dollar that your land value is above the threshold.
If you want to find out more about how much land tax you’ll have to pay, visit your state or territory’s revenue office website.
How do you pay land tax?
You’ll receive an assessment notice outlining the land tax you owe, with a due date for when you need to pay it. You could also set up a payment plan arrangement if you can’t pay it in full by the deadline.
It’s best to go to the state or territory’s official tax website to see how they assess land value and tax rates. Different states and territories will have their own taxing date, so make sure to check when payment is due with the office of revenue.
Land tax thresholds in Australia's states and territories
Land tax thresholds vary from state to state, so here is a quick guide on the land tax rates and taxing dates across Australia (July 2026):
Northern Territory
Land tax is not levied in the Northern Territory.
Western Australia
Land tax rates in Western Australia differ depending on the aggregated taxable value of the land. The state has a general land tax with a maximum tax rate of 2.67%. Below is the overview of the land tax matrix:
| Taxable value | Land tax rate |
|---|---|
| $0 to $300,000 | No land tax applied |
| $300,001 to $420,000 | $300 |
| $420,001 to $1,000,000 | $300 + 0.0025 dollars for each $1 in excess of $420,000 |
| $1,000,001 to $1,800,000 | $1,750 + 0.009 dollars for each $1 in excess of $1,000,000 |
| $1,800,001 to $5,000,000 | $8,950 + 0.018 dollars for each $1 in excess of $1,800,000 |
| $5,000,001 to $11,000,000 | $66,550 + 0.02 dollars for each $1 in excess of $5,000,000 |
| $11,000,001 and above | $186,550 + 0.0267 dollars for each $1 in excess of $11,000,000 |
If the property is located within the Perth metropolitan area, there is a Metropolitan Region Improvement Tax Rate of 0.14%. A Surcharge Land Tax Rate is not imposed as of yet.
South Australia
The general land tax rate has a maximum rate of 2.4% with a general threshold of $936,000. Below is the land tax matrix based on total taxable site value.
| Taxable value | Land tax rate |
|---|---|
| $0 to $936,000 | No land tax applied |
| $936,001 to $1,504,000 | $0.50 for every $100 or part of $100 above $936,000 |
| $1,504,001 to $2,188,000 | $2,840 plus $1.00 for every $100 or part of $100 above $1,504,000 |
| $2,188,001 to $3,504,000 | $9,680 plus $2.00 for every $100 or part of $100 above $2,188,000 |
| $3,504,000 and above | $36,000 plus $2.40 for every $100 or part of $100 above $3,504,000 |
There is a Trust Surcharge Land Tax Rate with a threshold of $25,000 and a maximum rate of 2.4%, which is applied on land owned in trusts where the interests of trust beneficiaries have not been disclosed or cannot be identified. Listed trusts or widely held trusts are exempt from the surcharge.
Taxing date for South Australia is midnight on 30 June.
Victoria
Victoria’s general land tax rate is at a maximum of 2.65%. Vacant residential land is taxed with an additional 1%. The vacant land tax is applied to all residential land in Victoria that’s left vacant for more than six months in a calendar year.
| Taxable value | Land tax rate |
|---|---|
| $0 to $50,000 | No land tax applied |
| $50,000 to less than $100,000 | $500 |
| $100,000 to less than $300,000 | $975 |
| $300,000 to less than $600,000 | $1,350 plus 0.3% of the amount greater than $300,000 |
| $600,000 to less than $1,000,000 | $2,250 plus 0.6% of the amount greater than $600,000 |
| $1,000,000 to less than $1,800,000 | $4,650 plus 0.9% of the amount greater than $1,000,000 |
| $1,800,000 to less than $3,000,000 | $11,850 plus 1.65% of the amount greater than $1,800,000 |
| $3,000,000 and over | $31,650 plus 2.65% of the amount greater than $3,000,000 |
There is also an absentee owner (surcharge) rate of an additional 4% to all land owned by absentee owners.
Victoria also has a COVID-19 Debt Levy starting from 1 January 2024 and will go on for 10 years. The levy offers a fixed charge on the following:
| Landholdings value | Fixed charge |
|---|---|
| $50,000 to $100,000 | $500 |
| $100,000 to $300,000 | $975 |
| $300,000 and above | $975 plus increased land tax rate of 0.1% (included in max rate of 2.65% above) |
Taxing date for Victoria is midnight on 31 December.
Queensland
There is a maximum general land tax rate of 2.75% for individuals. Below is the land tax threshold and rates for individuals.
| Taxable value | Land tax rate for individuals |
|---|---|
| $0 to $599,999 | No land tax applied |
| $600,000 to $999,999 | $500 plus 1 cent for each $1 more than $600,000 |
| $1,000,000 to $2,999,999 | $4,500 plus 1.65 cents for each $1 more than $1,000,000 |
| $3,000,000 to $4,999,999 | $37,500 plus 1.25 cents for each $1 more than $3,000,000 |
| $5,000,000 to $9,999,999 | $62,500 plus 1.75 cents for each $1 more than $5,000,000 |
| $10,000,000 and above | $150,000 plus 2.25 cents for each $1 more than $10,000,000 |
The surcharge land tax rate of an additional 3% is applicable to all taxable land owned by absentee owners, foreign corporations, and trustees of foreign trusts.
| Taxable value | Land tax rate for companies, trusts, and absentee owners |
|---|---|
| $0 to $349,999 | No land tax applied |
| $350,000 to $2,249,999 | $1,450 plus 1.7 cents for each $1 more than $350,000 |
| $2,250,000 to $4,999,999 | $33,750 plus 1.5 cents for each $1 more than $2,250,000 |
| $5,000,000 to $9,999,999 | $75,000 plus 2.25 cents for each $1 more than $5,000,000 |
| $10,000,000 and above | $187,500 plus 2.75 cents for each $1 more than $10,000,000 |
Taxing date for Queensland is midnight on 30 June.
New South Wales
The general land tax rate sits at a maximum rate of 1.6% for properties within the general threshold of $1,075,000 and up to the premium threshold of $6,571,000. For high-value properties over the premium threshold, there is a maximum land tax rate of 2%.
| Threshold | Taxable value | Land tax rate |
|---|---|---|
| General | More than $1,075,000 but less than $6,571,000 | $100 plus 1.6% of the land value above $1,075,000 |
| Premium | More than $6,571,000 | $88,036 plus 2% of the land value above $6,571,000 |
Surcharge land tax rates of an additional 5% apply to residential land owned by foreign persons.
Taxing date in New South Wales is midnight on 31 December.
Australian Capital Territory
In the ACT, there is a fixed charge of $ $1,778 plus a valuation charge up to 1.26% on five years average unimproved value. This applies to all rateable residential land that is not exempt from land tax. This does not apply to commercial properties.
The total valuation charge is calculated using the average unimproved value (AUV). The marginal rates are as follows:
| AUV | Percentage (%) |
|---|---|
| $0 to $150,000 | 0.54% of the AUV of the property |
| $150,000 to $275,000 | $810 plus 0.64% of the part of the AUV that is more than $150,000 |
| $275,001 to $1,000,000 | $1,610 plus 1.24% of the part of the AUV that is more than $275,000 |
| $1,000,000 to $2,000,000 | $10,600 plus 1.25% of the part of the AUV that is more than $1,000,000 |
| $2,000,000 and above | $23,100 plus 1.26% of the part of the AUV that is more than $2,000,000 |
There is a surcharge land tax rate of 0.75% on residential land owned by foreign persons. The surcharge is an additional land tax paid if a property is not the principal place of residence.
There are council rates with a fixed charge of $3,605, with an additional valuation charge of up to 5.9670% on a five-year average unimproved value for commercial properties. Residential and rural land are calculated at lower rates.
Taxing dates in the ACT are midnight on 1 July, 1 October, 1 January and 1 April.
Tasmania
Tasmania has a general land tax with a maximum rate of 1.5%. The land tax matrix is:
| Taxable value | Land tax rate |
|---|---|
| $0 to $124,999.99 | No land tax applied |
| $125,000 to $499,999.99 | $50 plus 0.45% of value above $125,000 |
| $500,000 and above | $1,737.50 plus 1.5% of value above $500,000 |
$1 737.50 plus 1.5% of value above $500 000
A surcharge land tax rate of 2% applies to all residential land owned by foreign persons. The surcharge is an additional land tax paid if a property is not the principal place of residence.
Taxing date is midnight on 1 July.
What is a land tax clearance certificate?
When you’re in the process of purchasing a property, you may be notified by your conveyancer or solicitor to apply for a land tax clearance certificate.
It’s crucial that the certificate is filled out, as it can protect you from having to pay the seller’s unpaid land tax. You want to ensure this gets done before you take possession of the property.
This is usually taken care of on your behalf by your conveyancer.
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